The Indian pharma industry is expanding its presence in the European market with a number of acquisitions in this region over the past few months. And this development comes at a time when the key US market, which typically accounts for 50 to 60 % of large Indian generic players’ exports, is grappling with increased protectionist threats from the Trump administration.
The latest acquisition by Indian pharma company in Europe was made by Lupin on Monday, which announced the acquisition of Netherlands-based VISUfarma, which is focused on the ophthalmic segment, with medications for dry eye, glaucoma, eyelid hygiene, blepharitis, retinal health and highly focused nutraceuticals prescribed by ophthalmologists. The Dutch company is being bought by Lupin for an enterprise value of Euro 190 million (nearly Rs 1976 crore) or nearly 4 times its sales of Euro 48.1 million for the calendar year ended 2024.
Lupin derived nearly 13% of its consolidated sales of Rs 6,163.7 crore in the June 2025 quarter from other developed markets which includes Canada, Australia, Europe and others, and this acquisition will complement Lupin’s existing ophthalmic product portfolio and also contribute to growth in the European market over the next few quarters, once all legal and financial formalities are completed.
They are not alone. In early September 2025, Zydus Wellness acquired UK-based Comfort Click for Pounds 239 million (nearly Rs 2,810 crore) or nearly 1.8 times its sales of pound 134 million for the year ended 30 June 2025.
Earlier, in March 2025, Zydus Lifesciences had acquired France-based Amplitude Surgical for Euro 256.8 (about Rs 2,380 crore) on the valuation matrix, enterprise value to sales for year ended June 2024 of nearly 3 times.
Trump’s tariffs and protectionist policy
Last week, the Trump administration had announced a 100% tariff on imported “branded and patented pharmaceutical products” starting from 1 October 2025. And while this latest protectionist measure from the Trump administration is expected to have minimal impact on large Indian pharma exporters like Lupin, Dr Reddy’s Labs and Cipla, and the nearly $ 12.4 billion pharma exports from India to that country in 2024, given that they are largely low-cost generic medications sold in USA , and not branded and patented pharma products.
Investors have been cautious on large generic exporters – Lupin gained nearly 0.5 % to Rs 1,931 on Monday, and hovering above its 52-week low of Rs 1,774 that was reached on 7 April 2025. Cipla was down 0.7% on Monday to Rs 1,488.5 on Monday, and not too far from its 52-week low of Rs 1,310 that was reached on 7 April 2025. Dr Reddy’s Labs was down 1.4% to Rs 1,235 on Monday and hovering above its 52-week low of Rs 1,025.9 that was reached on 7 April 2025.
Other large Indian generics players’ strategy
Dr Reddy’s Labs had grown its European sales by 142% y-o-y to Rs 1,274 crore in the June 2025 quarter helped by its earlier acquisition of UK-based Haleon’s global portfolio of consumer healthcare brands in the nicotine replacement therapy (NRT) category outside of the USA. In addition, the Hyderabad-based company had 13 launches in the European region excluding NRT in the June 2025 quarter. The above strategy helped Dr Reddy’s Labs grow consolidated sales by 11.4 % y-o-y to Rs 8,545.2 crore in the June 2025 quarter.
And Cipla had grown its sales in emerging markets and Europe by 8.6 % y-o-y to $ 101 million (nearly Rs 880 crore) during the first quarter of FY 26, and it helped the company’s consolidated sales rise 3.2% y-o-y to Rs 6,837 crore in the quarter under review.
Valuations and outlook
Lupin trades at about 19 times estimated consolidated FY 26 earnings (excluding the latest acquisition in Netherlands). Dr Reddy’s Labs trades at a P/E of 17.6 times estimated consolidated FY 26 earnings and Cipla trades at 20 times estimated consolidated FY26 earnings.
And considering the uncertainties in the global pharma market, readers should watch how large generic pharma exporters deal with these opportunities and challenges in the months to come.
Amriteshwar Mathur is a financial journalist with over 20 years of experience.
Disclosure: The writer and his family have no shareholding in any of the stocks mentioned in the article.
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